Calcutta, Aug. 5: Hospitality major EIH Limited, which runs hotels under the Oberoi and Trident brands, has sold its land and property in Darjeeling to a group of local businessmen led by B.M. Garg.

In its first-quarter results, EIH said it had earned Rs 11 crore from the sale and mentioned it as exceptional item. The sale helped the company to clock an over two-fold growth in profit after tax at Rs 19.86 crore against Rs 6.41 crore a year ago.

“In Darjeeling, what we have sold is primarily land and an old structure,” EIH executive vice-chairman S.S. Mukherji said. The Oberoi group held around 5 acres in Darjeeling along with the property. The group had bought the hotel and land in the early 1950s, but it remained idle for over three decades after being damaged by fire. The Oberoi group either had to renovate the property or consider selling it off. Subdued demand in the hospitality sector led to the group choosing the latter option.

“Despite the recent positive aspects designed to stimulate demand, the Indian hotel industry has been facing increased supply of rooms in almost all locations across the country,” executive chairman P.R.S. Oberoi told shareholders at the company’s annual general meeting today.

B.M. Garg, who owns a multiplex in Darjeeling, said, “No decision has been taken yet. But, the long-term plan is to consider a hospitality project on the land.”

Managed properties

P.R.S. Oberoi said the group would focus more on managing properties rather than owning them.

“At the moment, 80 per cent of the properties are owned by us,” he said, adding that the ratio could change dramatically in the future.

Meanwhile, the proposed Navi Mumbai hospitality project, which is coming up on the land owned by the Reliance group, a strategic investor in EIH, is stalled on account of environment clearance. “We will start construction once the environmental clearances are in place,” EIH managing director and CEO Vikram Oberoi said.

EIH is expanding its presence in the UAE and in Marrakech and Casablanca in Morocco.

Oberoi Group to sell iconic Hills hotel for Rs 11cr

KOLKATA: The Oberoi Group has finally decided to sell off Oberoi Mount Everest Hotel — the iconic property that once happened to be the pride of Darjeeling.

“The group is selling the land and the structure for Rs 11 crore,” said S S Mukherjee, the vice-chairman of EIH Ltd. “We have close to 4 acres in Darjeeling. This is a free-hold land and the new owner can do whatever he wants,” he added.

A source close to the development said that Darjeeling-based businessman Brij Mohan Garg and two of his partners from Mumbai are reportedly buying the property. The Gargs are a well-known business family in Darjeeling. They have interest in food dealership, warehousing and other businesses.

Oberoi Mount Everest in Darjeeling was built in 1914 by Aratoon Stephen, who named it ‘The Darjeeling Family Hotel’. In 1950, it was leased out to the Oberois for a period of 100 years. The hotel has remained closed for the last 30 years. There was a devastating fire in 1980 at the hotel, which led to the closure of the property. “Even after the fire, we tried to run it but it was closed for good following the GNLF agitation,” Mukherjee added.

It may be noted that the group had a plan to reopen the hotel following the signing of Gorkha Territorial Administration (GTA) Accord in 2012. Officials had even said that the group was looking at reopening the hotel.

According to Mukherjee, the group was hoping that water crisis in Darjeeling would be solved. If that had happened,it would have paved way for reopening of the property. But that has never happened. The structure was in a bad shape. If anyone wants to build hotel, he has to start from the scratch,” he added. TNN

EIH sells Darjeeling property for Rs11 crore

The property was damaged in fire and EIH couldn’t rebuild and start a hotel for at least 30 years

Kolkata: EIH Ltd, the company that runs hotels under the Oberoi and Trident brands, on Wednesday said it had sold its 4-acre property in Darjeeling in West Bengal for Rs.11 crore.

The property was damaged in fire and EIH couldn’t rebuild and start a hotel for at least 30 years. Availability of water, too, was a major constraint. Vice-chairman S.S. Mukerji said the price reflects the value of the land only. Thanks to this extraordinary income, net profit in the June quarter jumped to Rs.19.86 crore compared with Rs.6.41 crore a year ago.

The company’s revenue in the June quarter grew 6.4% over the same period last year to Rs.302.42 crore.

FLASH NEWS

West Bengal Govt. to form Namasudra Development Board within a month’s time, Bengal’s largest Dalit community Namasudras, many of whom are post-1971 migrants from Bangladesh. Some 17 ethnic development boards have been formed by Mamata Banerjee in Darjeeling and Kalimpong districts for the different communities of the hills. 35,181 total views, […]

With the tripartite talks failing in Uttar Kanya, the Joint Forum of Tea Trade Unions have called for a three-day bandh of all tea estates in Terai and Dooars in the plains and stopping of tea dispatch in all the tea gardens of the Hills. They also started a sit-in […]

UNESCO has expressed its displeasure over the maintenance of Darjeeling’s toy train and the closure of some stations due to the shortage of manpower and poor maintenance. 39,794 total views, 5,897 views today Comments comments

Gorkha Janmukti Morcha leader Bimal Gurung on Saturday claimed that the West Bengal government was secretly measuring land in Darjeeling and Kalimpong districts of West Bengal to settle those people who names would not eventually come up in the final list of National Register of Citizenship (NRC) 39,791 total views, 5,896 views […]

Four youths, Lakhu Subba, Wangdi Tamang, Kamal Mothay and Bigesh Mothay, all in their early 30’s, were arrested on Sunday on charges of raping the 16-year-old. 39,719 total views, 5,896 views today Comments comments

DT Archives

Sponsored

Apr 27, 2018Comments Off on Meet Aqui Thami from Darjeeling, whose travelling library is putting the spotlight on women’s books

‘Sister Library’, founded by the artist and activist, is going to several cities and sparking conversations around the representation of women in literature. Aqui Thami is an artist and activist from Darjeeling,...

By: Jyoti Thapa Mani [Gorkha History writer] This profile of Capt. Ram Singh Thakuri was compiled by eminent Gorkha history writer Ms. Jyoti Thapa, who meticulously curated this profile over the past 12 years, and used...

Feb 04, 2015Comments Off on Gazette Notification on issue of Citizenship issue of Gorkhas

Gazette Notification on issue of Citizenship issue of Gorkhas (Published in the Gazette of India Extraordinary Part – I Section 1 dated the 23rd August 1988 ) No. 26011/6/88-ICI Government of India Ministry of...